While this was supposed to be the beginning of the era of user generated video – the reality shaking out is more complicated than that. Specifically, advertisers are just not comfortable with the brand risk inherent in user generated content. That is changing slowly and it may continue to over time – but there’s likely to be a huge market for shops like JibJab long into the future. Likewise, video tools are now commodities and it’s all about the content you’ve got in your video service. Professional content is good, professional humor is great, say investors.

One thing worth noting about Jib Jab though is that they’re not a video production shop. If you look deeper into what they do there’s quite a lot of interactive innovation in there too. Don’t forget about making things interactive. Just porting a load of short form video-making skills online is only going to take you so far (in my humble opinion). Oh, and they’ve been very savvy in terms of getting commercial sponsorships and stuff as well.